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Elk .River <br />Municipal Utilities <br />13069 Orono Parkway <br />Elk River, MN 55330 <br />February 5, 2007 <br />To: Elk River Municipal Utilities Commission <br />Jerry Takle <br />Jim Tralle <br />Jerry Gumphrey <br />From: Bryan Adams <br />Subject: Service Territory Acquisition <br />phone: 763.441,2020 <br />Fax: 763.441.8099 <br />The 2007 budget contains a $260,000 line item to purchase service territory from <br />Connexus. This year, area 17 is due to be purchased (see the attached map). This area <br />contains the residence of our own Jim Tralle along with 114 other accounts. The <br />$260,000 is an estimated amount and the actual cost will vary depending upon numerous <br />factors with Connexus. <br />The service territory agreement expires in February 2011. We plan to purchase area 18 in <br />2008 and area 22 in 2009 or 2010 depending upon finances. In order to acquire area 17 <br />this year and area 18 next year, a new feeder from the North Substation will be required. <br />The 2007 budget contains a $225,000 item to construct this feeder. Staff recommends <br />authorization is given to acquire area 17 and construct the necessary feeder from the <br />North Substation. <br />In a related service territory issue, on January 29, 2007 the Clay County District Court <br />issued a favorable decision for Moorhead Public Service in their condemnation <br />proceedings with Red River Valley Co-op (see attached news release). Moorhead Public <br />Service and Red River Valley Co-op are one of several service territory disputes <br />currently in play in Minnestoa. <br />